Provisional attachment under GST ceases to have effect after the period of one year

[CA Bimal Jain]

The Hon’ble Delhi High Court in SEEMA GUPTA VERSUS PRINCIPAL COMMISSIONER OF GST AND ORS  [2024 (6) TMI 1152 - DELHI HIGH COURT] directed the bank to permit the operation of assessee bank account, which was provisionally attached under Section 83 of Central Goods and Services Tax Act, 2017 (“the CGST Act”).

Facts:

Seema Gupta (“the Petitioner”), bank account was provisionally attached by the Revenue Authority under Section 83 of the CGST Act vide Order dated January 27, 2022.

Thereafter, no fresh attachment order was passed.

Therefore, the Petitioner contended that, where no fresh attachment order has been issued and one year had been expired, the Petitioner should be allowed to operate the bank account.

Issue:

Whether the provisional attachment as per the section 83 of CGST Act ceases to have effect after the expiry of one year?

Held:

The Hon’ble Delhi High Court in SEEMA GUPTA VERSUS PRINCIPAL COMMISSIONER OF GST AND ORS  [2024 (6) TMI 1152 - DELHI HIGH COURT] held as under:

• Noted that, provisional attachment of the Petitioner’s Bank Account has ceased to have effect.
• Directed the bank to forthwith permit the Petitioner to operate the Bank Account.

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